“We have not been this uncertain about what’s coming next in the games industry since Epic’s been around for 20 years,” he admitted. “We’re at such an inflection point.”

While it used to be taken as a given that the PlayStation 3 would follow on or match the PlayStation 2’s huge success, the future of the industry is now incredibly unclear, Capps said.

“Will there be physical distribution in 10 years or even five? Will anyone care about the next console generation? What’s going on in PC? Can you make money on PC if it’s not a connected game? What’s going on in mobile? Tons of really scary things.”

Ironically Epic Games’ action-RPG Infinity Blade became the fastest-grossing app on the App Store last year, generating over $1.6 million in sales in the four days following its release, but Capps sees 99-cent (US) games on the App Store as a threat.